As has been widely reported, President Biden has nominated Gary Gensler to be the next chairman of the Securities and Exchange Commission. The former CFTC chairman under President Obama, Gensler currently teaches courses on blockchain and digital assets at MIT. What should the crypto community expect of Mr. Gensler as SEC chair?
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Commodity Futures Trading Commission
CFTC Files Complaint for Fraudulent Forex and Digital Asset Scheme
By Chelsea Lomprey on
Posted in Cryptocurrencies
On April 16, 2020, the Commodity Futures Trading Commission filed a civil enforcement action against two Florida-based crypto companies and their founder and sole owner. According to the CFTC, the Defendants raised $1.6 million from hundreds of customers by fraudulently marketing and soliciting a digital asset to be used in connection with the Defendants’ proprietary foreign exchange algorithm called ART. …
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CFTC Brings Charges in Fraudulent Bitcoin Trading Scheme
By Scott H. Kimpel on
On June 18, 2019, the Commodity Futures Trading Commission (CFTC) announced the commencement of a civil enforcement action (the Complaint) against two United Kingdom-based defendants, a purported Bitcoin trading company and its principal (collectively, the Defendants). The CFTC alleges that the Defendants perpetrated a wide-ranging fraud involving at least $147 million in Bitcoin from more than 1,000 customers.
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FinCEN Announces First Enforcement Action Against Peer-to-Peer Virtual Currency Exchange
By Scott H. Kimpel on
Posted in Regulatory
On April 18, 2019, the Financial Crimes Enforcement Network (“FinCEN”) announced its first enforcement action against a peer-to-peer virtual currency exchanger, which also included its first civil monetary penalty against a virtual currency exchanger, for failure to file Currency Transaction Reports (“CTRs”).
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Federal Court Lacks Personal Jurisdiction Over Defunct Virtual Currency Exchange
By Scott H. Kimpel on
Posted in Regulatory
To date, virtual currency exchanges in the United States have structured their operations in an effort to avoid being required to register as an exchange with either the Securities and Exchange Commission or the Commodity Futures Trading Commission. While these efforts may be entirely legal, without the regulatory protections of exchange registration, they could create enhanced risks for customers, particularly in the case of a fund’s insolvency or collapse. …
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CFTC Seeks Comment on Ethereum Mechanics and Markets
By Scott H. Kimpel on
Posted in Regulatory
In a recently published Request for Information (“RFI”), the Commodity Futures Trading Commission (“CFTC”) seeks public comment on the underlying technology, opportunities, risks, mechanics, use cases, and markets related to Ether and the Ethereum Network.
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Congress Considers Bipartisan Bills to Prevent Virtual Currency Manipulation
By Scott H. Kimpel on
Congressmen Darren Soto (D-FL) and Ted Budd (R-NC) recently introduced two bipartisan bills to address virtual currency price manipulation and maintain the United States’ leadership in the cryptocurrency industry.
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CFTC Publishes Primer on Smart Contracts
By Scott H. Kimpel on
The Commodity Futures Trading Commission (“CFTC”) recently published a detailed primer on smart contracts. The Primer discusses their functionality, use cases, regulatory environment and potential risks.
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U.S. District Court Reaffirms CFTC’s Authority over Cryptocurrency Fraud
By Scott H. Kimpel & Hannah Flint on
Posted in Cryptocurrencies
On July 12, 2018, a federal judge of the U.S. District Court for the Eastern District of New York reaffirmed its view that cryptocurrency fraud is subject to the U.S. Commodity Futures Trading Commission’s anti-fraud and anti-manipulation enforcement authority.
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CFTC Issues Advisory on Digital Tokens
By Scott H. Kimpel & Mayme Beth Donohue on
Posted in Cryptocurrencies, Initial Coin Offerings
On July 16, 2018, the Commodity Futures Trading Commission issued a customer advisory on digital tokens.
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